Tradeweb Markets Inc. (NASDAQ:TW), a global operator of electronic marketplaces for rates, credit, equities and money markets, today announced it has launched innovative features bridging the firm’s repurchase agreements (repo) and interest rate swap (IRS) product offerings to enhance clients’ execution workflows in these markets.
Amid higher money market volatility due to revised expectations of central bank policy actions, traders have been increasingly referencing spreads to overnight index swap (OIS) curves when evaluating pricing of fixed-rate repos.
Tradeweb makes OIS curves available during the repo trade negotiation process, helping institutional clients assess the price competitiveness of different repo rates across different currencies and maturities. These OIS spreads are generated for all GBP, EUR and USD trades on the Tradeweb repo platform, and will reflect the exact term of each repo trade, leveraging off swap curves on the IRS platform.
In addition, immediately after executing a long-dated fixed-rate repo transaction on Tradeweb, buy-side traders can manage their interest rate exposure in a fully electronic workflow, thereby achieving straight-through processing and reducing operational risk. At the click of a button, they can pre-populate a corresponding OIS ticket with the details of their completed repo trade – including start and end date, direction and cash amount – and send a request-for-quote enquiry to Tradeweb’s extensive network of liquidity providers on its IRS platform.
Nicola Danese, Co-Head of International Developed Markets at Tradeweb, said:
“By linking our repo and swaps platforms, we are transforming what used to be manual, disconnected and time-consuming processes into efficient, time- and cost-effective digital workflows. Only a multi-asset platform like Tradeweb can interconnect markets in this way, and we are proud to deliver another industry first for the benefit of our clients.”
Nick Sheffield, Portfolio Manager in the Money Markets team at Insight Investment, said:
“In today’s active rates environment, Tradeweb provides us with essential information for executing a fixed-rate repo transaction. We seek out technology that can help enhance investment outcomes for clients and welcome innovations that support speed of decision-making and execution processes.”
Tradeweb offers a seamless and efficient end-to-end solution for trading repo across 24 currencies, providing institutional clients with access to liquidity from 47 dealers globally. The platform sees on average 3,300 trades and over $340 billion in notional trading volume per day.
Meanwhile, Tradeweb’s IRS marketplace has been bringing greater transparency to swaps trading since 2005.
